Orient Technologies Limited has informed the Exchange about statement of deviation(s) or variation(s) under Reg. 32
ORIENTTECH · price
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Awaiting price reaction for this filing.
Orient Technologies Limited has disclosed a minor deviation in the use of proceeds from its August 2024 IPO. The company raised Rs. 214.76 crore (Rs. 120 crore fresh issue with net proceeds of Rs. 107.93 crore, plus Rs. 94.76 crore offer for sale). The deviation is small — just Rs. 0.04 crore (Rs. 4 lakh) — caused by the company paying certain vendors including GST, whereas the prospectus had specified that issue expenses would be paid excluding GST. Utilization during Q4 FY25 was Rs. 10.25 crore for office premises in Navi Mumbai, Rs. 16.00 crore for general corporate purposes, and Rs. 7.65 crore for issue expenses. Notably, the large Rs. 79.65 crore earmarked for capital expenditure has not been spent yet. The audit committee and board have noted the deviation and plan to adjust future reimbursements to offset the excess GST paid.
The deviation is immaterial (Rs. 4 lakh out of Rs. 120 crore fresh issue) and is being self-corrected by the company, so it is unlikely to affect shareholders or the stock price. However, the zero utilization of the Rs. 79.65 crore allocated for capital expenditure is worth watching, as delayed deployment of IPO funds could draw investor scrutiny over time.